BlackRock, Inc. (NYSE: BLK) today announced that its iShares®
Exchange Traded Funds (ETFs) business, the world's largest manager
of ETFs, has launched the iShares S&P International Preferred
Stock Index Fund (NYSE Arca: IPFF) on the NYSE Arca. The fund is
the first ETF that offers access to local currency, preferred
securities that are offered in developed markets outside the US.
The new ETF joins its U.S. focused counterpart, the iShares
S&P U.S. Preferred Stock Index Fund (NYSE Arca: PFF), which had
$7.2 Billion in Assets Under Management (AUM)(1).
Compelling Income Alternative
International preferred securities -- income generating
securities that are senior to common stock but subordinate to fixed
income -- can be a compelling investment alternative for investors
who are seeking to diversify outside of the U.S. and away from the
U.S. dollar.
"Income-seeking investors are starved for yield opportunities,
but traditional income sources today are offering historically low
yields," said Darek Wojnar, Head of iShares Product Development at
BlackRock. "At the same time, it's been challenging for investors
to easily tap into potentially attractive income sources beyond
their home markets.
"Our international preferred stock ETF is designed to uniquely
address this need, giving investors ready access to a diversified
basket of preferred securities in tandem with the benefits of
non-U.S. country and currency exposures," he said.
Access to Attractive Country Markets
The iShares S&P International Preferred Stock ETF provides
investors an opportunity to participate in several of today's most
attractive country markets, as part of its access to the non-U.S.
preferred securities category. The fund is benchmarked to the
S&P International Preferred Stock Index, a market-cap weighted,
quarterly rebalanced index. The top country weights are Canada
followed by the U.K. and New Zealand.
"Canada, in particular, is drawing increasing investor notice as
one of a group of relatively smaller, developed countries that are
less burdened by debt and structural deficits, and that also enjoy
better growth prospects than the larger developed nations," Wojnar
said. "The new iShares International Preferred Stock ETF is a
highly flexible approach for adding exposure to such markets with
an associated diversification benefit."
The index has a heavy tilt towards financials, a common trait
among preferred securities. The largest country and sector
representation is Canadian Financials at 59% of market
capitalization.
About BlackRock BlackRock is a leader in
investment management, risk management and advisory services for
institutional and retail clients worldwide. At September 30, 2011,
BlackRock's AUM was $3.345 trillion. BlackRock offers products that
span the risk spectrum to meet clients' needs, including active,
enhanced and index strategies across markets and asset classes.
Products are offered in a variety of structures including separate
accounts, mutual funds, iShares® (exchange-traded funds), and other
pooled investment vehicles. BlackRock also offers risk management,
advisory and enterprise investment system services to a broad base
of institutional investors through BlackRock Solutions®.
Headquartered in New York City, as of September 30, 2011, the firm
has approximately 10,200 employees in 27 countries and a major
presence in key global markets, including North and South America,
Europe, Asia, Australia, and the Middle East and Africa. For
additional information, please visit the Company's website at
www.blackrock.com.
About iShares iShares is the global
product leader in exchange traded funds with over 460 funds
globally across equities, fixed income and commodities, which trade
on 19 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and
financial intermediaries because of their relative low cost, tax
efficiency and trading flexibility. Investors can purchase and sell
shares through any brokerage firm, financial advisor, or online
broker, and hold the funds in any type of brokerage account. The
iShares customer base consists of the institutional segment of
pension plans and fund managers, as well as the retail segment of
financial advisors and high net worth individuals.
Carefully consider the funds' investment
objectives, risk factors, and charges and expenses before
investing. This and other information can be
found in the funds' prospectuses, which may be obtained by calling
1-800-iShares (1-800-474-2737) or by visiting www.iShares.com. Read
the prospectus carefully before investing.
Investing involves risk, including possible
loss of principal. Diversification may not protect against
market risk. Index constituents are subject to change.
In addition to the normal risks associated with investing,
international investments may involve risk of capital loss from
unfavorable fluctuation in currency values, from differences in
generally accepted accounting principles or from economic or
political instability in other nations. Narrowly focused
investments typically exhibit higher volatility. Preferred stocks
are not necessarily correlated with securities markets generally.
Rising interest rates may cause the value of the Fund's investments
to decline significantly. Payment of dividends is not guaranteed.
Removal of stocks from the index due to maturity, redemption, call
features or conversion may cause a decrease in the yield of the
index and the Fund.
Transactions in shares of the iShares Funds will result in
brokerage commissions and will generate tax consequences. iShares
Funds are obliged to distribute portfolio gains to shareholders.
Shares of the iShares Funds may be sold throughout the day on the
exchange through any brokerage account. However, shares may only be
redeemed directly from a Fund by Authorized Participants, in very
large creation/redemption units. There can be no assurance that an
active trading market for shares of an ETF will develop or be
maintained.
The iShares Funds ("Funds") are distributed by SEI Investments
Distribution Co. ("SEI"). BlackRock Fund Advisors ("BFA") serves as
the investment advisor to the Funds. BlackRock Fund Distribution
Company ("BFDC") assists in the marketing of the Funds. BFA and
BFDC are affiliates of BlackRock, Inc., none of which is affiliated
with SEI.
The iShares Funds are not sponsored, endorsed, issued, sold or
promoted by Standard & Poor's, nor does this company make any
representation regarding the advisability of investing in the
Funds. Neither SEI, nor BlackRock Institutional Trust Company,
N.A., nor any of their affiliates, are affiliated with the company
listed above.
* Not FDIC Insured * No Bank Guarantee * May
Lose Value
(1) Source: BlackRock, as of November 15, 2011.
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